UNDERSTANDING THE BENEFITS OF SOCIAL EXCHANGE IN B2B COMMUNITIES

Abstract

The study focuses on why organizations host and why entrepreneurs participate in business-to-business (B2B) virtual communities.The answer to this question can aid hosting organizations in creating and using B2B virtual communities in ways that will provide them economic benefits.We use social exchange theory to develop a model and research hypothesis based on a synthesis of the B2B ecommerce and the virtual communities' literature.The empirical analysis of our model suggests that those who would participate in online discussions of a B2B virtual community develop trust in the host and trusting beliefs in the members of the community consistently.Host contributed information significantly impacts the members' decision to see the community as useful, and ultimately purchase products and services from the host.Member contributed feedback significantly impacts the perceived usefulness of the community as well as enhances the probability of economic success of the company hosting the community.

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